Australian stocks rose on Friday marking their longest run of weekly gains since May 2018, as upbeat signals from the country's central bank and fresh stimulus reinforced bets of a swift recovery from economic damage inflicted by the coronavirus.
The S&P/ASX 200 <.AXJO> inched up 0.1% to 5,998.70. The benchmark advanced for a sixth straight week, rising 4%, and hit a near three-month high during the week.
Australia is likely to slip into its first recession in three decades, but investors are confident that a handle on coronavirus cases, reopening businesses, as well as monetary and fiscal stimulus will spur growth Down Under.
The Reserve Bank of Australia has repeatedly said that the downturn may not be as deep as initially feared and left room for more stimulus, while the government on Thursday launched a new incentive program for the construction sector.
"For the RBA, there is reason for cautious optimism over the outlook," Westpac analysts said.
"However, the outlook is still highly uncertain, and there will therefore be need for historic policy support for some time."
Travel stocks have benefited from hopes for recovery after bearing the brunt of the shutdowns since March. Qantas Airways <QAN.AX> rose 3.8%, a day after outlining plans to boost domestic capacity.
Morgan Stanley analysts said Qantas could increase domestic capacity up to 40% of pre-pandemic levels by July-end.
Financial stocks <.AXFJ> rallied more than 7% this week as countries relaxed curbs and hopes for support from global central banks to stimulate growth fed investor appetite.
"The stimulus is working, consumers are being protected and its bringing the market back to life. We are staring down the barrel of a V-shaped recovery, or that's what this trading suggests," RBC Capital Markets analysts said.
New Zealand's S&P/NZX 50 index <.NZ50> eased after four sessions of gains to end 0.5% lower at 11,171.66.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Vinay Dwivedi)
